US SMALL/MIDCAPS-Consumer stocks fall on sour outlooks
By Chuck Mikolajczak
NEW YORK, Oct 26 (Reuters) - Consumer stocks tumbled on Tuesday after several companies disappointed investors with their earnings outlooks, and weak consumer confidence figures underlined the bumpy nature of the economic recovery.
Auto retailers were among the primary decliners. Group 1 Automotive Inc (GPI.N) slumped 11.2 percent to $29.47 despite posting better-than-expected third-quarter earnings, as revenue was shy of expectations.[ID:nWNAB4704]
Fellow auto retailer Sonic Automotive Inc (SAH.N) plunged 12.9 percent to $10.89 after third-quarter results missed analysts' forecasts. [ID:nWNAB4761]
The S&P MidCap Consumer Discretionary index .4GSPD was down 2.6 percent and the S&P SmallCap Consumer Discretionary .6GSPD index lost 2.9 percent.
"These guys have had a pretty good run, everything from the retailers to the restaurants," said Kevin Kruszenski, head of listed trading at KeyBanc Capital Markets in Cleveland.
"Mix that with the confidence number and some tepid earnings and they are pulling back."
A report from The Conference Board showed U.S. consumer confidence deteriorated sharply in October due to poor labor-market conditions. For details, see [ID:nN27236301Z]
The MidCap discretionary group is up 19.7 percent since July 1, while the SmallCap discretionary shares have gained 18.3 percent.
Carter's Inc (CRI.N) plummeted 25 percent to $21.31 to $21.32 after the baby apparel retailer said it would delay the release of its third quarter earnings in order to complete an accounting review. [ID:nWNAB4936]
Under Armour Inc (UA.N) dropped 12.2 percent to $29.05 after the athletic clothing and shoe maker reported quarterly earnings that topped Wall Street estimates and boosted its full-year outlook, but implied a weaker-than-expected fourth quarter. [ID:nN27231262]
The S&P MidCap 400 index shed 1 percent while the S&P SmallCap 600 index lost 0.8 percent. The large cap S&P 500 .SPX dipped 0.4 percent.
(Reporting by Chuck Mikolajczak, Editing by Chizu Nomiyama)
